IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Do Commuters Free-ride? Estimating the Impacts of Interjurisdictional Commuting on Local Public Goods Expenditures

  • Shields, Martin
  • Shideler, David W.

In an era of political pressure to reduce taxes while increasing government services, local officials face difficult choices regarding what services to provide and how to finance them. One outcropping of this dilemma is that local citizens are expressing concerns that commuters use local government services but without paying for them. In response, some communities are considering taxing commuters. In this study we develop a basic model of congestion in a two-city model to examine commuters’ effects on the optimal provision of public goods. The theoretical result suggests that taxing commuters at the difference in marginal congestion costs between the two cities can attain market equilibrium. We then specify an empirical model to determine this tax’s size for Pennsylvania municipalities. The econometric results show differences in marginal congestion costs between workplace and resident communities, providing evidence that commuters may free-ride. The difference in marginal congestion costs, however, tends to be small, so we advise policymakers to be hesitant in adopting such a tax.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://purl.umn.edu/132244
Download Restriction: no

Article provided by Mid-Continent Regional Science Association in its journal Journal of Regional Analysis and Policy.

Volume (Year): 33 (2003)
Issue (Month): 1 ()
Pages:

as
in new window

Handle: RePEc:ags:jrapmc:132244
Contact details of provider: Web page: http://jrap-journal.org/index.htm

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Wildasin, David E., 1987. "Theoretical analysis of local public economics," Handbook of Regional and Urban Economics, in: E. S. Mills (ed.), Handbook of Regional and Urban Economics, edition 1, volume 2, chapter 29, pages 1131-1178 Elsevier.
  2. Edwards, John H. Y., 1990. "Congestion function specification and the "publicness" of local public goods," Journal of Urban Economics, Elsevier, vol. 27(1), pages 80-96, January.
  3. Craig, Steven G., 1987. "The impact of congestion on local public good production," Journal of Public Economics, Elsevier, vol. 32(3), pages 331-353, April.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:ags:jrapmc:132244. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.